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The Canada Life Canadian Employees Pension Plan - January 30, 2007

IN THE MATTER OF the Pension Benefits Act, R.S.O. 1990, c. P.8, as amended (the APBA@)

AND IN THE MATTER OF a Proposal of the Superintendent of Financial Services to Make an Order under section 69(1)(d) and section 69(1)(e) of the PBA relating to The Canada Life Canadian Employees Pension Plan, Registration Number 0354563

 

 

TO:

The Canada Life Assurance Company
c/o London Life Insurance Company
255 Dufferin Avenue
London, ON   N6A 4K1

 

Attention:      

Mr. Wallace B. Robinson
Assistant Vice-President, Pension Benefits                                           

Employer and Plan Administrator

 

 

AND TO:       

Adason Properties Limited
c/o London Life Insurance Company
255 Dufferin Avenue
London, ON   N6A 4K1

 

Attention:      

Mr. Wallace B. Robinson
Assistant Vice-President, Pension Benefits

Participating Employer



NOTICE OF PROPOSAL

I PROPOSE TO MAKE AN ORDER under section 69(1) (d) and section 69(1) (e) of the PBA that The Canada Life Canadian Employees Pension Plan, Registration Number 0354563, (the APlan@) be partially wound up in relation to those members and former members of the Plan who ceased to be employed by Adason Properties Limited (“Adason”) during the period November 1, 1999 to February 28, 2001.

REASONS:

  1. Adason is a wholly owned subsidiary of The Canada Life Assurance Company (“Canada Life”) and a participating employer in the Plan.

  2. Canada Life is the administrator of the Plan.

  3. Adason provides management services in respect of Canada Life’s portfolio of real estate assets.

  4. Between November 1, 1999 and February 28, 2001, there was a decline in the number of real estate assets in Canada Life’s investment portfolio that required management services.

  5. As a result, Adason ceased to provide management services at certain locations. The locations where Adason ceased to provide management services as a result of the change in Canada Life’s investment portfolio were Hamilton, London and North York.  The discontinuance of management services at these locations resulted in 2, 3 and 3 employees, respectively, losing their employment.

  6. Further, the change in Canada Life’s investment portfolio also resulted in 22 out of 35 employees of Adason at its corporate offices at 181 University Avenue, Toronto, losing their employment and 4 out of 14 employees at the 330 University/Simcoe Street, Toronto, losing their employment. The location of one terminated employee is unknown.

  7. A total of 35 out of 58 employees of Adason lost their employment between November 1, 1999 and February 28, 2001.

  8. All of the employees of Adason who ceased employment with Adason during this period were vested members of the Plan. Of the employees terminated during this period, 21 had more than 55 points (age and service).

  9. Section 69(1) (d) of the PBA provides that the Superintendent may require the full or partial wind up of a plan if “a significant number of members of the pension plan cease to be employed by the employer as a result of the discontinuance of all or part of the business of the employer or as a result of the reorganization of the business of the employer.”

  10. A significant number of employees (60%) of Adason (35 out of 58 employees) ceased to be employed by Adason during the period November 1, 1999 to February 28, 2001 as a result of a reorganization of the business of Adason and as a result of the discontinuance of part of the business of Adason.  As a result there are grounds under section 69(1) (d) of the PBA to order a partial wind up of the Plan.

  11. Section 69(1) (e) of the PBA provides that the Superintendent may require the full or partial wind up of plan if “all or a significant portion of the business carried on by the employer at a specific location is discontinued”.

  12. Adason provided property management services at locations in Hamilton, London and North York.  During the period November 1, 1999 to February 28, 2001 it discontinued its business at each of these specific locations. The discontinuation of its businesses at these locations resulted in the cessation of the employment of 8 employees of Adason.

  13. During the period November 1, 1999 to February 28, 2001, a significant portion of Adason’s business at the Toronto locations was also discontinued. The discontinuation of a significant portion of Adason’s business at the Toronto locations resulted in the cessation of the employment of 26 employees of Adason. As a result there are grounds under section 69(1) (e) of the PBA to order a partial wind up of the Plan.

  14. Where it has been clearly demonstrated that the entitlements of the members affected by a partial wind up under the PBA have otherwise been provided, the Superintendent may exercise his discretion not to order a partial wind up in part.

  15. Section 70(6) of the PBA provides that on the partial wind up of a pension plan, the affected members shall have rights and benefits that are not less than the rights and benefits they would have on a full wind up of the pension plan on the effective date of the partial wind up.

  16. The actuarial valuation reports as at January 1, 1997 and January 1, 2000 indicate that the Plan was in a surplus position during the period November 1, 1999 to February 28, 2001.

  17. In addition, the PBA provides enhanced benefit entitlements to members affected by a partial wind up, including grow-in benefits under section 74.

     
  18. Therefore, there is good reason for the Superintendent to exercise his discretion to order a partial wind up of the Plan because those employees of Adason terminated during the period November 1, 1999 to February 28, 2001 may have a right to surplus distribution and it has not clearly been demonstrated that other entitlements of these members on partial wind up under the PBA have been otherwise provided.

  19. Such further and other reasons as may come to my attention.

 

YOU ARE ENTITLED TO A HEARING by the Financial Services Tribunal (the ATribunal@) pursuant to section 89(6) of the PBA. To request a hearing, you must deliver to the Tribunal a written notice that you require a hearing, within thirty (30) days after this Notice of Proposal is served on you.*

 

YOUR WRITTEN NOTICE must be delivered to:

 

Financial Services Tribunal
5160 Yonge Street
14th Floor
Toronto, ON   M2N 6L9

 

Attention: The Registrar

 

FOR FURTHER INFORMATION on a Form for the written notice, please see the Tribunal website at www.fstontario.ca or contact the Registrar of the Tribunal by phone at (416) 590-7294 (toll free at 1-800-668-0128, ext. 7294) or by fax at (416) 226-7750.

IF YOU FAIL TO REQUEST A HEARING WITHIN THIRTY (30) DAYS, I MAY CARRY OUT THE PROPOSAL AS DESCRIBED IN THIS NOTICE.

THE ADMINISTRATOR IS REQUIRED pursuant to section 89(5) of the PBA to transmit a copy of this Notice of Proposal to members of the Plan whose employment was terminated with the Participating Employer, Adason, during the period November 1, 1999 to February 28, 2001.

DATED at Toronto, Ontario, this 30th day of January, 2007.  

 

K. David Gordon
Deputy Superintendent, Pensions

 

 

copy:

Mr. Ian J. McSweeney
Osler, Hoskin & Harcourt LLP
Barristers & Solicitors
Box 50, 1 First Canadian Place
Toronto, ON   M5X 1B8

*NOTE - Pursuant to section 112 of the PBA any Notice, Order or other document is sufficiently given, served or delivered if delivered personally or sent by regular mail and any document sent by regular mail shall be deemed to be given, served or delivered on the seventh day after the date of mailing.




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